Reports from state-controlled media claim that the Iranian government is planning to launch its own Cryptocurrency soon. The new currency, Govcoin, will help the country in circumventing the economic sanctions imposed by the United States. The launch of the coin will allow Iran to access the global economy.
Iranian Govcoin to Be Launched
Tehran is planning to introduce its own Cryptocurrency called Govcoin. Iran’s Press TV has reported that the Iranian Directorate for Scientific and Technological Affairs of the Presidential Office is the agency that is planning to create the national coin. The news was made public by a senior official of the management and investment affairs Mr. Alireza Daliri.
While speaking with the ISNA news agency, the directorate’s deputy said that the country has the capacity to create its own Cryptocurrency. He noted that there are various homegrown Iranian tech firms, that have the right skills for the challenge. Nevertheless, he noted that the companies have the challenge of eliminating pre-launch flaws that could taint the image of the new Cryptocurrency.
The role of creating the virtual currency will not be left to the country’s tech firms alone. Instead, these companies will work the Central Bank of Iran (CBI). Mr. Daliri added that they are working towards ensuring that the ground is ready for the use of the virtual currency. Working with the central bank will help in making the Cryptocurrency acceptable in the country.
Once launched, the Iranians will use the new currency to buy and sell goods and services. Moreover, the coin will also be used to transfer money anywhere in the world. The Crypto will be especially important to the country during the time of sanctions as it will allow it to seamlessly participate in international trade.
Why Iran Is Desperate for the Cryptos
In recent years, the relationship between Tehran and Washington has deteriorated significantly. President Trump pulled out of the Iranian nuclear deal and imposed economic sanctions on the country. Since then, the Iranian government has been trying to find a way out to cushion itself from the impacts of the sanctions. Many Iranians have blamed the dominance of the U.S. Dollar in international trade as one of the factors that give the country so much power to control the world affairs.
Iran is not the first country to turn to the virtual currency to bypass US-led economic sanctions. In March, Venezuela launched Petro, a commodity-backed digital currency, to overcome the U.S and E.U sanctions. Since then, Iran has been determined to create her own Cryptocurrency. The announcement to launch Govcoin is not a surprise, especially in the wake of the new sanctions.
In May, Iranian and Russian lawmakers held a joint meeting to discuss the issue. It was reported that Mohammad-Reza Pourebrahimi introduced the idea of creating Cryptocurrencies while in a meeting with the Chairman of the Federation Council Committee on Economic Policy Mr. Dmitry Mezentsev. During the meeting in Moscow, the Chairman of the Iranian Parliamentary Commission for Economic Affairs said that the two countries share the same opinion. He added that if they push forward with the project, they will become the first nations that use Cryptocurrencies to facilitate transactions.